The town of Wanaka is situated at the southern end of Lake Wanaka. It is surrounded by mountains. To the southwest is the Crown Range and township of Queenstown (120 kilometres (75 mi)); to the north the Haast Pass cuts through the Southern Alps near Makarora. To the northeast are the towns of Omarama and Twizel. Very close to Lake Wanaka is Lake Hawea, in a parallel glacial valley, which has a recently developed settlement of about 1,500 people. To the south of the town lies more of the Southern Alps. The Glendhu Bay motor park is close to the town, leading into the Matukituki River valley. This gives access to the Mount Aspiring National Park.
The centre of the town lies on flat land beside Roy's Bay. Parts of the town have expanded into the hills surrounding the centre and around Roy's Bay in both directions. The lakeside area of the town is prone to occasional flooding in spring, when heavy rain and snow melt can cause the lake to rise quickly. Such a flood occurred in November 1999
